US Stocks Hit Record High on Fed Rate Cut Signals

The S&P 500 index hit a record high on Thursday, after the Federal Reserve indicated that it could cut interest rates as soon as next month to offset growing risks to global and domestic growth.

The U.S. central bank left rates unchanged at the end of its two-day June policy meeting on Wednesday, but pledged to “act as appropriate” to sustain economic health.



Wall Street’s main indexes have gained in recent weeks on expectations of a rate cut and hopes of a revival of trade talks between the United States and China.

The benchmark S&P 500 index, which has risen 7.4% so far in June and is on track to recoup its previous month’s losses, hit an intraday record high of 2,956.20 on Thursday.

“Chairman Jerome Powell’s comments that ‘the case for additional accommodation has strengthened’ was exactly what market participants wanted to hear,” said Robert Johnson, chief executive officer at Economic Index Associates in New York.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza